Simon Malls | More Choices®

LIMERICK TOWNSHIP, Pa., Sept 20, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Simon Property Group, Inc. (NYSE: SPG) announced today that its Chelsea Property Group division broke ground on Philadelphia Premium Outlets(R) in a ceremony held this morning.

Officials from Roseland, NJ-based Chelsea Property Group were on-hand as construction began on the 430,000-square-foot upscale, fashion-oriented manufacturers' outlet center located off Route 422 at the Sanatoga exit (Evergreen Road) on Lightcap Road, in Limerick Township, Pennsylvania. Chelsea, a division of Simon, is a leader in the outlet industry based on its proven concept of Premium Outlet Shopping(R). The center will be a single- level, village-style project with a colonial American architectural theme.

Philadelphia Premium Outlets will house over 110 outlet stores and will feature high-quality national brands serving the area's permanent population as well as visitors to the area. "Our trademarked concept of Premium Outlet Shopping(R) differentiates Chelsea centers from other outlet centers and entertainment megamalls. We are confident that we will be bringing together an excellent mix of upscale and high quality merchants befitting this area's desirable demographics," said Michele Rothstein, senior vice president of marketing for Chelsea. "We selected Limerick Township because we felt there was a synergy in the type of quality centers we build and the brand conscious and quality-minded consumers who live in and visit this region. Shoppers who seek the finest brands at outlet prices and desire a more upscale shopping atmosphere will appreciate the difference in what we will be bringing to the Philadelphia Metro Area. We appreciate the great support we have received from the township including chairman of the supervisors, David Kane and township manager, Daniel Kerr."

Philadelphia Premium Outlets, scheduled to open in Fall 2007, will create approximately 800 to 1,000 quality jobs and will generate millions of dollars in sales tax revenue. "We are thrilled to be welcoming Simon and Chelsea to our community," said David Kane. "They are first-class organizations and we are confident that this project will be an enhancement to Limerick Township and the entire region. The outlet center is a much awaited project for our community."

Simon Property Group, Inc., an S&P 500 company headquartered in Indianapolis, Indiana, is a real estate investment trust engaged in the ownership, development and management of retail real estate, primarily regional malls, Premium Outlet(R) centers and community/lifestyle centers. The Company's current total market capitalization is approximately $44 billion. Through its subsidiary partnership, it currently owns or has an interest in 284 properties in the United States containing an aggregate of 200 million square feet of gross leasable area in 38 states plus Puerto Rico. Simon also owns interests in 52 European shopping centers in France, Italy, and Poland; 5 Premium Outlet centers in Japan; and one Premium Outlet center in Mexico. Additional Simon Property Group information is available at http://www.simon.com . Simon Property Group, Inc. is publicly traded on the NYSE under the symbol SPG.

SOURCE Simon Property Group, Inc.

Michele Rothstein
973-228-6111
mrothstein@cpgi.com

Les Morris
317-263-7711
lmorris@simon.com
both of Simon Property Group, Inc.